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Council orders sale of 100 East Washington lot to satisfy NEURA loan; motion to forgive loan fails
Summary
The Newnan City Council voted 6-1 to call the outstanding loan for 100 East Washington Street due, requiring the Newnan Urban Redevelopment Authority to sell the lot and remit proceeds to the city; a separate motion to cancel and forgive the promissory note died for lack of a second.
The Newnan City Council on Jan. 28 voted to call the outstanding loan tied to 100 East Washington Street, directing that proceeds from a sale of the lot be remitted to the city and that any remaining balance be considered for forgiveness only after sale proceeds are returned.
Council considered two competing options. One motion to cancel the promissory note and forgive the secured debt was made but received no second and therefore failed. A subsequent motion to call the loan in full and require the lot’s sale carried on a 6-1 vote.
City staff told the council the property was originally acquired through right-of-way compensation when McIntosh Parkway was widened; the city later sold the parcel and took back a note. Staff and legal counsel described options available if the borrower could not repay: authorize NEURA to market and sell the lot and remit sale proceeds to the city, forgive any deficit afterward, or proceed with foreclosure similar to other secured-debt remedies.
Supporters of forgiveness argued the lot is a rare land asset that NEURA (the Newnan Urban Redevelopment Authority) could use to advance affordable homeownership for working families if the authority retained the parcel without a repayment obligation. Opponents said the city has a responsibility to taxpayers because the lot was bought with public funds and that proceeds should be returned when possible.
Council members clarified that any sale would be properly marketed and that any contract or sale would return to the council for approval before the city forgave a remaining balance. The motion that passed included an explicit direction that the city would not, at this time, initiate a foreclosure sale as the first remedy; rather, NEURA should seek a market sale and remit proceeds, and the council would consider forgiveness of any remaining balance after that process.
No individual vote-by-name was recorded in the oral minutes; the mayor announced the outcome as motion carried, 6-1.
The council did not direct immediate foreclosure; it left options open for staff and legal counsel to manage follow-up steps and return with implementation details if needed.
